Correlation Between INtRON Biotechnology and Seoyon Topmetal

Can any of the company-specific risk be diversified away by investing in both INtRON Biotechnology and Seoyon Topmetal at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining INtRON Biotechnology and Seoyon Topmetal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between iNtRON Biotechnology and Seoyon Topmetal Co, you can compare the effects of market volatilities on INtRON Biotechnology and Seoyon Topmetal and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in INtRON Biotechnology with a short position of Seoyon Topmetal. Check out your portfolio center. Please also check ongoing floating volatility patterns of INtRON Biotechnology and Seoyon Topmetal.

Diversification Opportunities for INtRON Biotechnology and Seoyon Topmetal

0.46

Correlation Coefficient

INtRON Biotechnology  Seoyon Topmetal

Very weak diversification

The 3 months correlation between INtRON and Seoyon is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding iNtRON Biotechnology and Seoyon Topmetal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seoyon Topmetal and INtRON Biotechnology is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on iNtRON Biotechnology are associated (or correlated) with Seoyon Topmetal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoyon Topmetal has no effect on the direction of INtRON Biotechnology i.e., INtRON Biotechnology and Seoyon Topmetal go up and down completely randomly.

Pair Corralation between INtRON Biotechnology and Seoyon Topmetal

Assuming the 90 days trading horizon iNtRON Biotechnology is expected to under-perform the Seoyon Topmetal. In addition to that, INtRON Biotechnology is 1.29 times more volatile than Seoyon Topmetal Co. It trades about -0.11 of its total potential returns per unit of risk. Seoyon Topmetal Co is currently generating about 0.1 per unit of volatility. If you would invest  348,500  in Seoyon Topmetal Co on October 26, 2024 and sell it today you would earn a total of  10,000  from holding Seoyon Topmetal Co or generate 2.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

iNtRON Biotechnology  vs.  Seoyon Topmetal Co

iNtRON Biotechnology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iNtRON Biotechnology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INtRON Biotechnology is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Seoyon Topmetal

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Seoyon Topmetal Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Seoyon Topmetal is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with INtRON Biotechnology and Seoyon Topmetal

The main advantage of trading using opposite INtRON Biotechnology and Seoyon Topmetal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INtRON Biotechnology position performs unexpectedly, Seoyon Topmetal can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Seoyon Topmetal will offset losses from the drop in Seoyon Topmetal's long position.

The idea behind iNtRON Biotechnology and Seoyon Topmetal Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.